New Year, New Habits: Contactless Payments Are Here to Stay, With Only 16% of Consumers Planning to Revert to Pre-Pandemic Ways to Pay
As the one-year mark of the Covid-19 pandemic approaches and digital payments play a larger role in daily life around the world, there will be no reverse gear on consumer behavior as we head into 2021. In the third edition of its global research study, the "Visa Back to Business Study - 2021 Outlook," Visa (NYSE: V) found that the continued small and micro business ("SMB") shift towards digital commerce will evolve in the New Year and bring an increased focus on areas such as security and fraud prevention, and more emerging payment tools such as 'buy now, pay later' and mobile payment acceptance.
According to the study, by the end of 2020, 82% of SMBs surveyed had embraced new forms of digital technology to meet changing consumer behaviors. Looking ahead to 2021, SMBs are assessing what other payment technologies are critical to meeting today's consumer expectations, with results led by security and fraud management software (47%), contactless or mobile payment acceptance (44%), accepting payments via mobile device (41%), installments or 'buy now, pay later' (36%) and digital backend payment operations (31%).
"With greater hindsight into 2020, we can clearly see that the digital payment experiences that exceled the most - contactless and eCommerce - were driven out of necessity and have become more habitual in people's daily lives at a pace not often seen," said Kevin Phalen, global head of business solutions, Visa. "If 2020 was the year of contactless and eCommerce, results of this study tell us that 2021 will bring greater attention to security and fraud prevention, and trial of more emerging digital commerce tools that help businesses thrive."
All markets surveyed have seen a rapid adoption of new payment technologies and changing consumer behavior related to commerce. Additional findings from the study in Brazil, Canada, Germany, Hong Kong, Ireland, Russia, Singapore, United Arab Emirates (UAE) and United States, highlight the depth of the impact in 2020 and expectations for 2021:
The Road to Recovery for SMBs in 2021
Regional Insights: Making Moves to Meet Consumers
As the trusted engine of commerce, Visa will continue to introduce new programs and resources that advance its commitment to digitally enable 50 million SMBs. On the heels of Visa Street Teams visiting more than 300,000 small businesses in 12 markets over the course of 2020 to provide new point of sale branding, a virtual version of this program-The Virtual Breakroom: Back to Business Learning Series-can now offer every small business access to tutorials on contactless payments, growing your business online and digital marketing/reputation management.
Methodology: Visa Back to Business Study - 2021 Outlook
The Visa Back to Business Study was conducted by Wakefield Research between November 13 and November 25, 2020, among 250 small business owners at companies with 100 employees or fewer in Brazil, Canada, Germany, Hong Kong, Ireland, Russia, Singapore, UAE and U.S. Separately, the consumer portion of the survey was conducted by Wakefield Research between November 13 and November 25, 2020, among 1,000 adults in the U.S., and 500 adults in Brazil, Canada, Germany, Hong Kong, Ireland, Russia, Singapore and UAE. The data was weighted to ensure an accurate representation of adults ages 18+ in each market.
About Visa Inc.
Visa Inc. (NYSE: V) is the world's leader in digital payments. Our mission is to connect the world through the most innovative, reliable and secure payment network - enabling individuals, businesses and economies to thrive. Our advanced global processing network, VisaNet, provides secure and reliable payments around the world, and is capable of handling more than 65,000 transaction messages a second. The company's relentless focus on innovation is a catalyst for the rapid growth of digital commerce on any device, for everyone, everywhere. As the world moves from analog to digital, Visa is applying our brand, products, people, network and scale to reshape the future of commerce. For more information, visit About Visa, visa.com/blog and @VisaNews.
1 Based on Visa data from Jul 1, 2019 to Jun 30, 2020